Abstract: Systematically analyzing the impact mechanisms of policy on Land Use Conflict (LUC) is crucial for constructing effective conflict mitigation strategies. However, previous research on how policy influences LUC remains relatively limited. Focusing on the indirect driving role of policy on LUC, this study proposed County Development Level (CDL) under MFOZP guidance as an intermediary variable, bridging the implicit influence of MFOZP and the explicit changes in LUC. Using the Beijing-Tianjin-Hebei (BTH) region in China as a case study, we analyzed the spatio-temporal evolution characteristics of LUC and CDL for the periods 2000–2010 and 2010–2020, before and after MFOZP implementation. Panel models and Geographically Weighted Regression (GWR) were employed to explore the mechanism by which CDL influences LUC under MFOZP guidance. The results show that: 1) MFOZP implementation effectively alleviates land use pressure from regional development, with LUC continuously declining at a rate of 2.41%, while CDL exhibits slight growth (3.84%), during 2010–2020. 2) Under MFOZP guidance, CDL reduces pressure on Land Use Structure Conflict (LUSC) and Land Use Process Conflict (LUPC), enhances its inhibitory effect on Land Use Function Conflict (LUFC), and significantly contributes to LUC coordination, with notable spatial heterogeneity. 3) The coupling relationship between CDL and LUC has improved post-implementation. Based on this, tailored LUC coordination strategies are proposed for different functional zones. This study confirms the effectiveness of MFOZP in coordinating LUC and provides a scientific reference for LUC research under policy frameworks and the governance of LUC in the BTH region.